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ZEC $1,266 Project Eleven and Relm to study quantum risk in insurance underwriting
The two firms will explore whether post-quantum security controls at institutions could inform how digital asset risk is priced.
Key takeaways
- Exploratory only. The companies said the work is exploratory and announced no discount, new policy or timeline.
- Strongpoint's first partner. Project Eleven launched Strongpoint on Oct. 7 with the Zcash Foundation as its first development partner.
- Coinbase's bitcoin share. Coinbase puts its share of all bitcoin at about 5% and has pressed for custodian-friendly quantum upgrades.
What happened
Project Eleven has brought Relm Insurance in as a development partner for Strongpoint, its custody product aimed at institutions. The two firms announced the arrangement on Tuesday. Their joint work will look at whether the steps an institution takes against future quantum computers could be weighed when an insurer underwrites its digital assets.
The partners plan to examine how exposed an institution's keys are, how it signs and approves transactions, how ready it is to migrate, and which outside vendors it relies on. Relm will also review Strongpoint's design, including security controls, auditability and the evidence a client could give an insurer to show post-quantum readiness.
Both companies described the work as exploratory. Any effect on underwriting or premiums would depend on further evaluation and on Relm's own underwriting process, according to the release. No discount, new policy or timeline was announced.
Why it matters
A sufficiently powerful quantum computer could, in theory, work backward from a public key that is already visible to the private key that controls funds. Insurers that price digital asset risk may need a way to judge how prepared a client is for that shift.
Joseph Ziolkowski, Relm's founder and CEO, said quantum computing is an emerging threat that should shape risk assessment now. He said the work would examine how institutions identify exposure, show effective controls and prepare for post-quantum readiness.
Alex Pruden, Project Eleven's CEO and co-founder, said on Unchained that proactive steps such as crypto agility and post-quantum security could produce a cost saving on insurance premiums. He framed the timing question as whether the transition happens on an institution's schedule or under pressure.
Background
Project Eleven launched Strongpoint on Oct. 7 with the Zcash Foundation as its first development partner. The platform runs classical and post-quantum signatures side by side and keeps approval rules and audit trails separate from the cryptography, so the signing algorithm can be swapped without rebuilding those controls.
Relm is a Bermuda-domiciled specialty carrier founded in 2019 that writes coverage for companies in digital assets, AI and other emerging sectors. It has also launched a kidnap and ransom product aimed at Web3 and crypto executives.
Coinbase, which puts its share of all bitcoin at about 5%, told Bitcoin developers last week that a quantum-resistant upgrade has to work for big custodians. Europol earlier this month urged wallet providers to start testing post-quantum upgrades.
What is still unclear
- Whether post-quantum controls will change underwriting criteria or premium rates is unresolved, the companies said any impact depends on further evaluation and Relm's independent underwriting procedures.
- No timeline was given for the joint work, and no new policy or discount was announced.
Questions readers ask
What is the Project Eleven and Relm Insurance partnership?
Relm Insurance is a development partner for Strongpoint, Project Eleven's institutional custody product. The firms will study whether post-quantum security controls could factor into digital asset insurance underwriting.
Will post-quantum security lower insurance premiums?
That is not settled. The companies called the work exploratory, and any effect on underwriting or premiums depends on further evaluation and Relm's own underwriting process.
What is Strongpoint?
Strongpoint is Project Eleven's custody platform for institutions. It runs classical and post-quantum signatures side by side and keeps approval rules and audit trails separate from the cryptography.
Why does quantum computing matter for crypto custody?
A large enough quantum computer could, in theory, derive the private key that controls funds from a public key that is already visible. That prospect has prompted calls for custodians to test post-quantum upgrades.
